Wimpey warns of Woodrow US writedown

2007-04-27T07:45:00+01:00

George Wimpey has given warning of more falls in US house prices, as it tries to forge a £5.5bn merger with Taylor Woodrow. The Times

At Wimpey's annual meeting yesterday, chairman John Robinson, said: 'Pricing pressure in the US is significant because of the high level of stock still available, and the indirect credit pressures at the more affordable end of the market.'

His warning is expected to foreshadow a writedown by Taylor Woodrow of its US assets within a week, possibly by $40m (£20m) or more.

It is understood that potential bidders for Taylor Woodrow, which may include Persimmon, are awaiting an update from Taylor Woodrow on its US business before pricing any bid approach.